Dubai considers PPP for metro project

Date
October 06, 2015

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Dubai's Roads and Transport Authority (RTA), which is responsible for planning and providing the requirements of transport, roads & traffic in the Emirate of Dubai (UAE), is mulling the development of the Route 2020 metro project through a PPP model.

According to RTA's chief engineer of Rail Agency Shahrin Bin Abdol Salam, the agency is currently clarifying enquiries from consultants in a tender process that has already been launched. It is expected that the tender process to select a company who will structure the project, will be closed by December. Construction works are scheduled to begin by early 2016.

The project includes the development of a 15 km extension of the Dubai Metro's Red Line, starting from the Nakheel Harbour and Tower Metro station. The new line will have a total of seven stations and will pass through, among others, Discovery Gardens, Furjan, Jumeirah Golf Estates and Dubai Investment Park. It will also includes a plan to build three more station to serve Al Maktoum International Airport.

This announcement comes after Dubai passed, in mid August, a new law to encourage PPPs to fund new infrastructure projects. Previously, infrastructure investment in Dubai involved direct government spending, or spending by its entities. Now, the private sector will invest in these projects. As an example, the RTA recently announced that it will seek private financing for 30% of its upcoming projects.

In early September RTA announced plans to launch a request for qualifications (RFQ) for the Union Oasis mixed-use PPP project. The project will involve the development of a two mixed-use towers (between 20 and 30 floors high) being constructed above the Union metro station on an area spanning 15,000 m².